XJO trade ideas
AU200 going up Ascending triangle breakout, similar to many other asset class at the moment, there's major shift of sentiment going on.
###This is not an investment advice, trade with care with your own risk!###
ASX 200 truncated fifth? Why the Australian stock market fails
In my July 2019 analysis, I assumed ASX 200 was going through a Wave 3 and will go up to 8300 in a year. However, XJO failed epically, it did not even come close to the 1.618 projection at 8300, when the American stocks were strongly bullish. During the February and March 2020 corona virus panic, XJO dropped much more than Nasdaq Composite and some other American indexes. Comparing to American market, all those failures point to some underlying weakness in the Australian stock market and broad economy.
Another alarming fact is that the February 2020 all time high is 7180, right below the 3.618 projection of the 1982 to 1987 Wave 1 at 7200. In Elliott's Wave theory, Wave 5 often has some fibonacci proportionate relation with Wave 1. The Australian market is hinting here, February 2020 is the top of a truncated, 'failed' wave 5, as it failed to go significantly higher than the November 2007 top of Wave 3. If we take inflation into account, 7180 in 2020 might be actually lower than 6850 in November 2007.
Fundamentally, Australian stocks perform worse than their American counterparts because we have a crazy property bubble here, making many young and old Australians curb consuming and stock investing to save for mortgage deposits. My impression is that most immigrants or new Australians prefer to invest in real estate, not old fashioned shares. Australian immigration intake has been decreasing since 2017, corresponding neatly with the first wave of housing market crash. Unemployment caused by corona virus in 2020 make the rise in property prices since late 2019 look like a dead cat bounce, a Wave B. Unfortunately 2020 might be the start of a lost decade for Australia, featured with decreasing fertility, decreasing immigration, decreasing property and stock market, rising inflation, and collapsing Australian dollar. Indeed we are similar to the Japan of 1990, just awakening from decades of dreamlike growth, easy money and unrealistic confidence.
In the short term, ASX 200 is likely to try to approach 6000, getting close to 10 and 200 week moving average as resistance. This short term recovery will probably not change the bleak big picture though. My bottom line is that Australian market will drop more when the American market drops, and rise less when the American market rises, so overall Australian shares are much more bearish.
aus200 short term longH&S on 4H chart
1H establishing trend and needs a break out at the neckline at 5400 before contintuation on the long.
5400 is a key area that has been tested multiple times and currently working its way for a possible build up for a break out.
S&P ASX 200 short term viewXJO - The short term uptrend is fading away and could head back to the red zone if it falls below the price channel. Critical support is at around 4870.00
XJO indecision ....A newbie thought on which directions XJO would take next week ...
1. retraces to 4992.2 to level with left shoulder
2. rise to complete (B) wave to 6165.3 (Fib 0.618 level) distance equals top shoulder to neckline & probably just under 55 days SMA level
3. going down to complete (C) wave to probably Fib 1.618 level of 2930
any pro tips welcomed :) & Stay Safe !
ASX 200 daily TrackerTrack this daily when the Trendline breaks near SHORT around 5500-5600 or move Super to Debt
Possible bear flag formation on XJOSo We've seen a remarkable recovery in the Australia Equity market. Many are calling the bottom, while some are suggesting that this is a dead cat bounce. I've highlighted in in my 4H chart the possible bear flag formation. Only time will tell.
XJO ASX200 Update - Bear Flag Pattern We have gone up 20%+ since 23 March, this is likely to be an oversold bounce or "dead cat bounce" in technical terms.
Since 90% of Shops are still close, Corona Virus is still in the headlines around the world and death rates are not showing signs of slowing down.
Therefore, it is very unlike that the bottom is in and we are exiting this bear market in the short term.
By looking at the short term chart, we can see a BEAR FLAG pattern forming for ASX200.
I am expecting lower levels and we drop toward the gap. (4700-4800)
AUSSIES IN TROUBLE - THEY DON'T KNOW IT YET 😨Hardly anyone looks at the Australian 200. It is one of the best indices to short.
The Aussies strangely went north at open of their market last night - when the rest of the world's indices were burning down. There is usually a significant lag between the AUS200 and the other indices, which I decided to exploit.
This morning 08:30AM 2020-04-01 it's struggling to stay afloat. I suspect it will collapse and follow other indices (south).
XJO - 50 EMA Strong Resistance Approaching!This rally has seen us nearly technically enter a bull market. The computers are out of control. I expect the 50 EMA to act as major resistance. High probability & a good time to sell some positions in longer term portfolios.
ASX 200 index (daily) testing resistance at the 20-day MAASX 200 index (daily) testing resistance at the 20-day MA
AUS200 where toThe AUS200 (4h chart) is trapped between the support and the resistance levels as shown on my graph, any breakout from within those levels could be a big move either way.
S&P/ASX 200 Possible Bullish MovementHigher timeframe charts show the momentum supporting for the uptrend and overall market seems for now bullish. Stock markets doing well around globally at the starting day of the week. This might be something to do with cheaper fiat currencies around the globe making it easier to spend cash on buying stocks.
AU200AUD looking for more demand price became expensive so price sold off (above) and perfectly timed l might add., if lower prices builds PA around area l'll look to buy. did my top down analysis to find fresh demand where buyers could be waiting
ASX, H4 - potential inverted head and shoulders patternOn the H4 chart of the Australian stock exchange index ASX we may observe a potential inverted head and shoulders pattern. It seems that her right arm may have occur on the level at which the left arm appeared. It is therefore possible a strong level of support - 4811 points.
If the horizontal neckline is broken (5355 points) then a path may open for further increases in the area of 6037 points. There may be another potential resistance level.
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Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
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